What is a joint venture? Before we begin to explain a cash call, it is necessary to understand what a joint venture is because, throughout this text, we will come across the words“joint venture” more than once to define a cash call. A joint venture is an agreement by several companie...
What is a covered call? A covered call has 2 components: owning an investment (typically a stock—which we will use as the example going forward) and selling a call option on that same investment. The shares that are owned cover the obligation created by selling to open the options contrac...
A margin call happens when an investor is forced to quickly come up with cash to cover debt incurred while trading. This generally results from a drop in the market value of assets, such as stocks, that have been used as collateral for loans. The margin call requires a trader to either ...
How is a call option different from a put option? A put option is the flip side of a call option. Just as a call option gives you the right to buy astockat a certain price during a certain time period, a put option gives you the right to sell a stock at a certain price during...
A cash back or cash rewards credit card gives you cash rewards for spending. The reward is usually a percentage of the amount you spend. Therefore, if a card offers 1 percent cash back, spending $4,500 over the course of a year would give you a reward of $45. Typically, you can ch...
A cash out refinance is when you refinance your mortgage and tap into your home equity to take out a new home loan for more money than what you currently owe and receive the difference in cash.
Credit card cash advances are convenient, but can be costly with associated fees. Learn what a credit card cash advance is, when to use it and how to limit the fees with this article by Better Money Habits.
What is a Cash Advance? A cash advance is a withdrawal of cash directly from your credit card. They are loans that draw from your available credit instead of creating a new line of credit. Many credit card issuers use a separate cash advance limit as part of your overall credit limit, ...
Cash Call: What to Tell Carmakers?
Margin accounts must maintain a certain margin ratio at all times. If the account value falls below this limit, the client is issued amargin call. This is a demand to bring the account value back within the limits. The client can add new cash to the account or sell some holdings to rai...